Are you protected?

Don’t leave your assets vulnerable to attack. Much like a goalie, asset protection planning will help to shield your assets from attack.

Asset protection is a broad term, encompassing many different techniques, but here at our South Florida law firm, we focus our asset protection on two areas: estate planning and business formation. In the area of estate planning, the main approach is to use trusts to dispose of your assets rather than a will. A trust protects your assets by first avoiding probate and all of the costs (both monetary and time) associated with that process. Secondly, trusts protect your assets by keeping them in your family. With a will, the asset is no longer yours to control following the first disposition, a trust allows you to control the asset for multiple generations. This makes sure that the inheritance will never be taken by divorce or remarriage. For example, if you want to give all of your estate to your daughter and then to her children, a trust allows you to do this without giving any to her spouse. Furthermore, a trust protects your beneficiaries from themselves, if they are either too young or not fiscally responsible. Because they are the beneficiary and not necessarily the trustee, you can name a trustee who will make the financial decisions for them. Finally, trusts offer asset protection by being creditor protected. Assets that are in a trust can not be reached by creditors, assuring that the inheritance remains with the beneficiary.

Choosing the proper business form also works as asset protection. If you own a business as a sole proprietor or even in a general partnership, you can be personally liable for all of the debts of the business. Limited partnerships, LLCs, and corporations can protect your asset from business debts. A limited partnership consists of two classes of partners: a general partner, who manages and is more active, and a limited partner, who is more like an investor. The limited partner’s liability is limited to whatever they have put into the company, whereas the general partner remains liable for all the debt. An LLC offers limited liability as well, while allowing for more active participation. The manager of a multi-member LLC makes the decisions and runs the company, but is still afforded protection. If someone sues an LLC, they can only recover the company’s assets. Subsequently, if a person sues the manager of an LLC for a personal matter, the assets of the LLC are protected from this personal creditor. Finally, a corporation offers protection to all of its shareholders while also offering increased flexibility with the management structure. A corporation allows for different classes of stock with different voting abilities. Corporations also allow you to raise capital by issuing stock.

Regardless of what business form you end up choosing, you must also engage in business succession planning. Because all of these business forms are separate legal entities, they will survive after you are gone. Therefore, you must plan for what happens to your companies or you risk them dying. If you have multiple members or partners in your company, you can arrange a plan beforehand in which they buy your shares at a predetermined price. The company could then purchase life insurance in that amount to make sure that the company does not have cash flow issues and does not have to sell off company assets to buy your stake.

Whether you are looking at asset protection from an estate planning or business formation standpoint, our attorneys can help be your goalie and protect the assets you’ve worked so hard to acquire.

For more information on successful Florida estate planning and asset protection techniques, please contact the South Florida law firm of Wild Felice & Partners, P.A. at 954-944-2855 to schedule your free consultation, or visit our website at www.wfplaw.com

It’s a Wild world. Are you protected?

PROTECT YOUR FUTURE, TODAY.

Another football season is upon us and with it, undoubtedly, another controversial discussion regarding concussions and the trauma inflicted on player’s brains. Getting your bell rung is no longer considered a badge of courage, but rather, a grizzly reminder of the potential ramifications of life after football.

Plain and simple, estate planning helps protect your family in the event that something bad happens to you, and yet, 55% of Americans don’t even have a last will, leaving them vulnerable to costly court fees and legal battles.  Even though it’s predicated on incapacitation or death, estate planning doesn’t have to be morbid. In fact, it can actually be life-affirming, because the process will allow you to take a closer look at the people you care most about in life—and ensure their future happiness.

Whether you choose a will based plan or a trust based plan, your planning should also include a power of attorney, a designation of health care surrogates, and HIPAA releases. These planning tools may be overlooked, but their importance cannot be overstated. The power of attorney and designation of a healthcare surrogate will allow important healthcare and financial decisions to be made for you in the event of incapacity or death, while the HIPAA release will make sure your healthcare surrogate will have access to whatever he or she needs to make informed decisions. By planning for the future and using these various techniques, your family will be better protected from creditors and other hassles when the time comes. Get ahead of the other 55% and get an estate plan today. It’s never too early to plan ahead.

To be better prepared for sudden and unexpected sickness, incapacitation, or death, you will benefit from the following documents:

1. Living Trust – the best way to maintain control over all of your assets and distributions, while avoiding the hassle, expense, and lack of privacy associated with probate.
2. Last Will & Testament – this is your traditional will that is used upon death to distribute property to beneficiaries, specify last wishes, and name guardians for minor children.
3. Durable Power of Attorney – this allows you to designate and authorize someone to legally act on your behalf, in the event that you become incapacitated.
4. Combination Living Will & Designation of Healthcare Surrogate – this outlines important healthcare decisions in advance, and appoints a healthcare surrogate to make healthcare decisions for you when you become unable to do so yourself.

For more information on successful Florida estate planning and probate techniques, please contact the South Florida law firm of Wild Felice & Partners, P.A. at 954-944-2855 to schedule your free consultation, or visit our website at www.wfplaw.com.

It’s a Wild world. Are you protected? SM

The death rate in Florida is 100%, which means NO ONE can completely avoid the probate process. The term probate generally refers to the method by which your estate (the totality of the assets in your personal name at death) is administered and processed through the legal system after you die.  The probate process helps you divide and assign parts of your estate in an orderly and supervised manner. Your estate must be divided according to the specifics of your Will, if you die with a Will, or according to statute if you die intestate or without a Will. (Your debts and taxes must be paid before your beneficiaries receive their inheritance, for example).

If you have creditors at death, those debts must be satisfied before dividing the remainder of your assets, additionally there may be taxes due and those must be paid before distribution as well.  This means that the process of finding your creditors and paying those debts can take months and the distribution of the remainder to your heirs may become complicated.  There are legal methods that allow a person to make the process of distributing assets after death more efficient and less costly, which is an advantage to your family and loved ones and a wise investment.  Planning for the future will save your family members additional grief and possibly avoid conflict among family members and other beneficiaries.

Having a Will is a solid first step in the right direction to ease the probate process, but that is not all you need.  Placing your property in Trust to protect it from creditors, drafting a Power of Attorney, a Living Will and a Designation of Healthcare Surrogate are other methods to ensure that nothing is left to chance, that your family will be protected and that somebody you trust will make legal decisions for you when you are no longer able to make them yourself.

An attorney that specializes in estate planning can help explain the legal tools that are available to each individual depending on their financial situation and their specific needs.  Common methods that are utilized to avoid probate are Revocable Trusts which allow your property to be protected from creditors and susceptible to probate.  By scheduling a consultation an attorney can better explain the additional benefits of creating a revocable trust and how this can save you time and money in the long run.

It is important to note that you do not have to have a large estate to take advantage of the benefits of having your assets in a trust or any other legal estate planning tools.  This is a common misconception, but having an estate plan is something that everyone should give serious consideration to.  Additionally, it is also important to mention that although having an estate plan may not seem like a priority to most people, you need to be prepared for any eventuality.

Nobody likes to think about death or incapacity, but these are facts of life and it can happen to any of us at any given time.  If you have a family and if you have small children you should plan for their care in case you can no longer care for them and this is something that an estate planning attorney can help you with.

It’s a Wild world. Are you protected? SM

For more information on successful Florida estate planning and asset protection techniques, please contact the South Florida law firm of Wild Felice & Partners, P.A. at 954-944-2855 to schedule your free consultation.

First comes love, then comes marriage, then comes estate planning.

Between booking a venue, finding a dress, and planning the honeymoon the last thing on your mind is estate planning. Why would you plan for the demise of a relationship before it has even begun?

We hate to be the rain on your… wedding day, but life happens.

Here are four estate planning essentials for newly weds:

1. Designate a beneficiary:Couples need to change the beneficiary designation of their retirement accounts to their spouse. It is undoubtedly better to have the beneficiary designations accurately reflect the spouse so that there are no delays or issues in having the benefits paid.

2. Create a will:Without a will, state law decides who gets what assets and how much. Not all laws leave 100% of property to the spouse. We suggest meeting with an estate-planning attorney to help execute a basic will.

3. Appoint a Power of Attorney: In an event of incapacity, where your spouse is unable to make medical, legal and financial decisions, it is important to designate a power of attorney. This will provide them with the ability to make decisions for one another. It is also important to name an alternate person in the event of an accident where both parties are injured. In fact, most young couples travel together, increasing the possibility of an accident involving both parties.

4. Home Ownership Documents:To avoid probate and add creditor protection, it is very beneficial to have the home ownership as a joint property rather than being owned by only one of the newly weds.  Married couples should consider Tenants by Entireties form of ownership (TBE). TBE property can protect both parties from an individual spouse’s creditors. For example, if one spouse injures a third party in a car accident, the injured party will not be able to take the TBE account into a lawsuit.

So before you start hearing wedding bells, you need to hear Michael Wild explain all the ways to protect your property and assets. To learn more about estate planning, probate and asset protection, visit our website at www.wfplaw.com

Last week, the Supreme Court made same-sex marriage a constitutional right.  That means that no state can unilaterally deny same-sex couples the right to marry. In a previous decision the Supreme Court gave DOMA [“Defense of Marriage Act”] the boot, holding that its definition of marriage (limited to a union between one man & one woman) violates the guarantee of equal protection provided by the Fifth Amendment. Keep in mind, this only applied on a Federal level, and States could still refuse to recognize same-sex marriages. The most recent case, Obergefell v. Hodges, which was decided last week, extends this protection to same-sex couples under the fourteenth amendment which applies at the state and local levels of government. Here in South Florida, same-sex marriage was recognized only recently.

Same-sex couples now enjoy the benefit of holding property as tenancy by the entirety, which is a benefit Reserved for married couples; each spouse owns 100% of the property.  One spouse cannot transfer it without the agreement of the other.  Any bank account, for example, in the name of 2 married persons is considered to be held as tenancy by the entirety unless otherwise specified in writing.  Also, any creditor of one spouse alone can’t go after any asset held by the entirety to satisfy a debt.

Another benefit that is now available to same-sex couples is the elective share option, which means that if a spouse is cut out of the will, he or she can exercise the elective share, which entitles the person to 30% of the estate regardless of whether the decedent included the person in the will.

401K funds can now be transferred upon death to a same-sex spouse, which was not possible before, if the state did not allow same-sex marriage.  The Supreme Court Decision now extends the homestead protection to same-sex couples as well, that is, the surviving spouse automatically receives at least a life estate interest in the property of the decedent spouse (the surviving spouse can automatically live in the marital home for the rest of his or her life), which was not possible before in a state that did not provide for same-sex marriage.

While these are certainly great estate planning features for same-sex couples, you don’t want to always rely on automaticity. Rather, you should plan for the future of your spouse and children if you have them, as there is a vast array of estate planning techniques that will ensure your receive all of the benefits of the law.

For more information on successful Florida estate planning and asset protection, contact the South Florida law firm of Wild Felice & Partners, P.A. at 954-944-2855 or via email at mwild@wfplaw.com to schedule your free consultation.

It’s a Wild world. Are you protected?SM